Banks across the country are seeing an increase in impersonation scams. While bank impersonation scams are not new, criminals are becoming increasingly sophisticated at posing as legitimate financial institutions. They use spoofed phone numbers, fake websites and convincing scripts to appear credible.
First rule of thumb: Don’t trust the phone number displayed on your caller ID. Frank Spagnuolo, Case Development and RTRF Manager for Regions’ Corporate Security
Anyone can become a target if they are not paying close attention.
“First rule of thumb: Don’t trust the phone number displayed on your caller ID,” said Frank Spagnuolo, Case Development and RTRF Manager for Regions’ Corporate Security. “It is very easy for scammers to spoof a number and make it appear that a call is coming from Regions or another bank when it is not.
“If you have any doubt about whether you are speaking with a legitimate bank associate, hang up and call a trusted number you already have saved. For example, Regions customers can call 1-800-REGIONS (1-800-734-4667) to verify the call.”
Common Bank Impersonation Scam Tactics
Scammers often create a sense of urgency to convince customers to share sensitive information.
Examples include:
- A customer receives a call or text message from someone claiming to be a banker who is resolving suspected debit card fraud. The caller then asks for the customer’s card number and PIN for “verification.” Remember: #BanksNeverAskThat.
- A customer receives a call from someone impersonating a bank associate who questions a fictitious transaction. The scammer attempts to convince the customer to provide one-time passcodes, a debit card PIN or online banking credentials to “stop the fraud.”
- A customer receives a call from someone claiming to work in the bank’s corporate security or fraud prevention department. The caller says a branch employee is under investigation and asks for the customer’s assistance. The scammer then requests account information or one-time passcodes, which can be used to gain unauthorized access to online banking accounts and conduct fraudulent transactions.
The best response is simple: Hang up and contact your banker directly using a trusted phone number, the number on the back of your card or by making an in-person visit to a branch.
“While you think you’re getting help, you’re actually becoming a victim of fraud,” Spagnuolo said. “Criminals can use your information to access your account and steal your money. While banks may have different verification processes, Regions never asks for your PIN to verify your identity.
While you think you’re getting help, you’re actually becoming a victim of fraud.Frank Spagnuolo
Whether or not you are a Regions customer, our goal at Doing More Today is to provide education on trending scams and help people stay safe.
Bank impersonation scams can be especially effective because scammers exploit the trust consumers place in financial institutions and use that trust for financial gain.
Three Tips to Avoid Bank Impersonation Scams
- Do not trust caller ID or text messages alone. Phone numbers can be spoofed.
- Never provide sensitive information in response to an unsolicited call, text or email.
- Contact your bank directly using a verified phone number you have saved or one listed on your debit or credit card.
Why Urgency Is a Major Red Flag
Banks may contact customers when they detect suspicious activity, but legitimate bankers communicate professionally and allow customers time to verify information. Scammers, on the other hand, rely on fear and urgency.
“Scare tactics and urgency are a scammer’s greatest weapon,” said Kimberly Reece, customer advocacy manager for Enterprise Fraud Management at Regions. “They pressure people to act immediately by providing sensitive information, such as a PIN or one-time passcode.
“That urgency is a huge red flag. Hang up immediately and contact your bank as soon as possible.”
Scare tactics and urgency are a scammer’s greatest weapon.Kimberly Reece, customer advocacy manager for Enterprise Fraud Management
FCC Warns about Imposter Scams Aimed at Businesses
A recent release from the Federal Communications Commission pointed out how scammers use bank impersonation scams to target commercial and small businesses.
In this scam, a criminal impersonates your bank and falsely claims the bank is working with a government agency to investigate suspicious activity. The scammer may pressure you to move your funds to another account or convert them gold or cryptocurrency.
That request is an immediate red flag because they’re asking you to move funds that are then hard to trace once they’re out of your existing account.
“No matter how convincing they may seem, this is a scam,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “Banks don’t ask you to move funds in this manner and banks don’t put pressure on you.”
The FCC advises you that if you get such requests, cut off contact and consult your bank directly at a number you’re familiar with. Don’t provide important personal or account information. And don’t respond to messages from unknown entities.
Additional Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/fraud-prevention or speak with your Banker for further information on how you can help prevent fraud.